INTERNATIONAL LICENSING AND CONTROL PRINCIPLES TO BE INTRODUCED IN ARMENIA’S GAMBLING INDUSTRY

PanARMENIAN.Net –
April 6, 2010 – 14:42 AMT 09:42 GMT

RA Deputy Minister of Finance Vardan Aramyan said that the reformation
of Armenia’s gambling industry proceeds from the principles of Moneyval
Committee on combating money laundering and terrorism financing, as
well as from the international norms on consumers rights protection
adopted in all developed countries of the world.

Presenting a new concept for reforming the gambling industry,
Mr. Aramyan told reporters that the Armenian government approved the
concept on regulation of gambling industry in RA and implementation
of control over it, as well as a program of measures to be taken. The
concept aims to continue the gambling industry streamlining in Armenia,
taking into consideration the best international experience, as well
as to introduce mechanisms for specifying the control and licensing
conditions.

According to him, the concept foresees amendments to the current
legislation, as well as strengthening of fiscal requirements.

Specifically, it is planned to toughen the requirements towards
establishers of gaming houses, as well as towards those who deal with
organization of games with wins. If this is a physical person, he/she
shall have no previous convictions, precedents of bankruptcy or of
facilitation of some organization bankruptcy through his/her actions.

"During the first stage, it is planned to toughen the licensing
and improvement of accountability types with usage of the best
international experience that will be done within first two years,"
he said.

With respect to this, Mr. Aramyan added that currently the owners
of gaming houses submit only quarterly reports concerning their
liabilities to the budget, while this sphere licensing of is not on
an appropriate level.

The next stage of the concept implementation foresees introduction
of electronic document circulation and toughening of technical
requirements. The Deputy Minister clarified that the system will
allow fixing data of a separate gaming machine or gambler, having a
personal ID card. "The obtained data will be maintained by a relevant
authorized body, which will have the possibility to follow the work
of any machine at any time," he said.

Mr. Aramyan said that currently there are 11 licensed gaming houses
and 103 organizers of games with wins in Armenia, and tax payment
at the amount of around AMD 4 billion enter the state budget from
the field, while the monthly fixed payment totals AMD4 million per
gaming table and 125,000 per gaming machine. According to the concept,
starting from 2013 it is foreseen to collect a single state fee at
the amount of AMD1.2 billion from gaming houses that will decrease
up to AMD 400mln, depending on zones. "The toughening of fiscal and
legislative requirements will lead to the enlargement of players in
this field that will allow reducing shadow and securing their maximum
accountability," he noted.

As for toughening of restrictions for entering a gaming house, changes
will be introduced to limit the availability of the gambling industry
for state employees and high-ranking officials. Mr. Aramyan added
that certain restrictions will be made related to the organization of
advertisement in this field, specifically, there are countries, where
the gaming houses advertisement is prohibited in schools and cultural
centers, while in other countries it is completely prohibited. As
for Armenia, the Deputy Minister said that currently there are not
any legislative limitations forbidding a state employee to gamble
in casino.
From: Baghdasarian